ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved a set of proposals at incentivizing and facilitating greater participation of foreign companies in Pakistan’s petroleum exploration sector.
Presiding over by the Finance Minister, Senator Muhammad Aurangzeb the ECC approved a Technical Supplementary Grant (TSG) of Rs 100.3 million on the request of the Ministry of Interior & Narcotics Control for the maintenance and repair of defence equipment utilized by the Federal Civil Armed Forces.
On another summary submitted by the Ministry of Interior & Narcotics Control, the Committee approved an additional Rs 841.56 million as TSG to support border control operations, internal security, and maintenance of law and order by the Federal Civil Armed Forces.
The Committee further considered and approved a summary from the Defence Division, granting a TSG of Rs 50 billion for a range of approved projects of the Defence Services.
The ECC also deliberated upon a summary presented by the Ministry of National Food Security & Research regarding the winding up of PASSCO and the establishment of a Special Purpose Vehicle (SPV). The Committee approved the formation of the SPV, allowing an initial paid-up capital of Rs 1,000,000 and reducing the authorized capital in line with requirements for the structured winding down of the organization.
In addition, the ECC discussed a summary submitted by the Petroleum Division concerning the extension of licence periods and assignment of working interest for offshore oil and gas exploration blocks. The Committee approved the set of proposals aimed at incentivizing and facilitating greater participation of foreign companies in Pakistan’s petroleum exploration sector.
The Economic Coordination Committee (ECC) also approved PPL’s request for Assignment of Participating Interests in the Eastern Offshore Block-C, marking a significant milestone in Pakistan’s offshore exploration efforts. Under the approved arrangement, the Participating Interests in the block will be held by Turkish Petroleum Overseas Company (TPOC) at 25%, Pakistan Petroleum Limited (PPL) at 35%, Mari Energies Limited at 20%, and Oil & Gas Development Company Limited (OGDCL) at 20%.
As part of the Assignment Agreement, the operatorship of the block will be transferred to TPOC subject to signing the deed of agreement. This will bring valuable international offshore operating experience to Pakistan’s exploration landscape and this transition is expected to enhance technical capabilities, operational efficiency, and overall project delivery.
The block contains a drill-ready prospect, which will now be pursued by this consortium under the operator-ship of TPOC. The upcoming exploration well is expected to attract substantial foreign direct investment into Pakistan’s offshore sector, reinforcing the government’s commitment to strengthening the country’s reliance on indigenous energy resources. The drilling of this planned well is anticipated to open new horizons for offshore exploration in Pakistan. In the event of this exploration success, additional opportunities in the area will be prioritised for further drilling, ultimately contributing to Pakistan’s resource base and long-term energy security.
This development aligns with the government’s recent award of 23 offshore exploration blocks to various E&P companies, including the members of this consortium, signaling strong momentum and renewed confidence in Pakistan’s offshore potential. With the ECC’s approval, the consortium is now set to advance preparations for drilling operations, marking a new chapter in the country’s pursuit of energy security and resource development.
The meeting was attended by Federal Minister for Petroleum Ali Pervaiz Malik, Federal Minister for Planning & Development Ahsan Iqbal, Special Assistant to the Prime Minister Haroon Akhtar Khan, along with federal secretaries and senior officials from the concerned ministries, divisions, and regulatory bodies. Ends
